Tronox Holdings Plc · NYSE:TROX

Tronox — Investor Day (May 2019)

120 slides from Tronox's investor day presentation, May 30, 2019

Slide 4: Emergency Evacuation Procedures
41st STREET Emergency Evacuation Procedures • If an emergency condition is reported, an alarm will sound and announcements will alert guests regarding the nature of the emergency and if evacuation is necessary. • TimesCenter staff will guide guests to exit the venue using both the 40th and 41st stre
Slide 5: Safe Harbor Statement and Non-U.S. GAAP Financial Terms
Safe Harbor Statement and Non-U.S. GAAP Financial Terms 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 of 1995. Words such as “believe,” “estimate,” “will be,
Slide 10: A Brilliant Advantage
A Brilliant Advantage World’s largest vertically integrated TiO2 producer • Second largest TiO2 pigment producer • Second largest high-grade titanium feedstock producer • Second largest zircon producer © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 11: A Brilliant Advantage: Global Footprint
A Brilliant Advantage With an unmatched global footprint on NYC and Stamford Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT six continents USA Corporate Offices Capacity: 200 kMT China Capacity: 46 kMT Stallingborough • 1.1 million tons of Oklahoma City UK Capacity: 165 kMT nameplate TiO2
Slide 12: A Brilliant Advantage
A Brilliant Advantage • Great assets and strong market positions in every corner of the world, but our extraordinary people will differentiate us • We now form the most culturally and geographically diverse team in the industry with deep expertise at every step of the value chain © 2019 Tronox Holdi
Slide 13: An Executive Team with a Global Perspective
An Executive Team with a Global Perspective Willem Van Niekerk John Romano Jean-François Turgeon SVP, Business Transformation EVP, Chief Commercial EVP, Chief Operating Officer and Saudi Arabia and Strategy Officer Jeffrey Neuman Chuck Mancini Tim Carlson SVP, Corporate Secretary SVP, Organizational
Slide 14: Russ Austin – Managing Director, Australia
Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough UK Australia and Asia Capacity: 165 kMT Russ Austin – Managing Director, Australia Oklahoma City USA Administration & Irene Buhrfeindt – Vice Presi
Slide 15: Mpho Mothoa – Managing Director, South Africa
Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough South Africa UK Capacity: 165 kMT Mpho Mothoa – Managing Director, South Africa Oklahoma City USA Edwin Capendale – Director of Sales, Global Miner
Slide 16: Emad AlJunaidi – Vice President, Global Supply Chain
Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Stallingborough The Middle East Corporate Offices UK Emad AlJunaidi – Vice President, Global Supply Chain Capacity: 165 kMT Oklahoma City USA Dick Dean – Vice President, Operations
Slide 17: Jimmy Killebrew – Managing Director, Europe
Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough UK Capacity: 165 kMT Oklahoma City USA Administration & Technical Center Thann Snapper France Australia Hamilton Capacity: 32 kMT USA Capacity: 225
Slide 18: Paul Gilman – General Manager, Hamilton
Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough UK Capacity: 165 kMT Oklahoma City USA Administration & Technical Center Thann Snapper France Australia Hamilton Capacity: 32 kMT USA Capacity: 225
Slide 23: Our Starting Point
Our Starting Point Legacy Legacy Tronox Synergies Cristal Business Trending Up Business in Remains Transition Strong © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 24: Our Starting Point
Our Starting Point Legacy Tronox Business • Stabilization initiatives Remains Strong • Co-product margins and recovery in Europe and Asia • Operational excellence initiatives • Benefits of our vertical integration Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 2
Slide 25: Our Starting Point
Our Starting Point Legacy Cristal • Reviewing Legacy Cristal 1Q Quality of Earnings – Potential overstatement of inventory Business In – Potential understatement of certain liabilities – Working Capital true-up 180 days post close Transition • Cristal Contribution impacted by:  Above market TiO2 pi
Slide 26: Our Starting Point
Our Starting Point Synergies • Projecting greater synergies than original expectation Trending Up Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 90-105 125-155 Synergies – – 5-10 30-40 35-50 Legacy Cristal 395 63 ©
Slide 27: Synergies Realized in Calendar Year
Synergies Realized in Calendar Year US $M 220 $200 175 original estimate • Reset to 2018 of run rate synergies by end baseline and of Year 3 $160 calendarized original estimate of run rate 120 synergies by end • Project more of Year 2 synergies than $100 original expectation original estimate of run
Slide 28: 2019 Financial Commitments Provide a Foundation for Creation of Shareholder Value
2019 Financial Commitments Provide a Foundation for Creation of Shareholder Value All Numbers on As Reported or To Be Reported Basis Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 90-105 125-155 Synergies – – 5-10 3
Slide 29: …With Significant Earnings and Free Cash Flow Growth by 2020
…With Significant Earnings and Free Cash Flow Growth by 2020 All Numbers on To Be Reported Basis Revenue Adj EBITDA Free Cash Flow EPS ($ MM’s) ($ MM’s) ($ MM’s) 2H 2019 1,670-1,770 390-465 135-160 0.30-0.55 2019 2,830-2,980 635-740 130-160 (0.17)-0.43 2020 3,650-3,745 900-1,100 325-450 1.40-2.50 ©
Slide 30: … and Even More Robust Financial Performance over the Long Term
… and Even More Robust Financial Performance over the Long Term All Numbers on To Be Reported Basis Revenue Adj EBITDA Free Cash Flow EPS ($ MM’s) ($ MM’s) ($ MM’s) 2023 4,000-4,400 1,200-1,400 525-650 3.00-4.00 Future Potential of 5,000-6,000 1,500-1,800 650-850 – Asset Base © 2019 Tronox Holdings
Slide 31: Capital Allocation
• Disciplined Capex: Capital  Reinvesting to lower our costs/increase productivity Allocation  Focused on short-cycle, quick-win capex to lower our costs and increase quality Full Optionality  We have low-cost expansion opportunities (unlocking the hidden factory) – vs. economics of brownfield /
Slide 34: Our Values and Outward Mindset
Our Values and Outward Mindset Our Approach Our Core Values Our Results • We have an uncompromising focus on operating safe, reliable and responsible facilities. • We honor our responsibility to create value for stakeholders. • We treat others with respect, and act with personal Safe, Quality, An ou
Slide 35: Strategy Driven by Changing Industry Dynamics
Strategy Driven by Changing Industry Dynamics Changes in TiO2 Market Increased competitive Structure intensity Implications Flattening of cost curve Advantaged cost structure is critical to remain competitive / Industry consolidation and migration to relevant Chloride Process public ownership Higher
Slide 36: Changing Industry Dynamics: Cost Curve Flattening
Changing Industry Dynamics: Cost Curve Flattening 2011 Global Standalone Pigment Cost Curve Cash Costs ($/t TiO2) • Such a short time ago, the industry looked so TIER 4 much different $4,000 Small-scale, high cost players ~2.3x high-to-low ratio • The first quartile of the global cost curve was $3,5
Slide 37: Changing Industry Dynamics: Cost Curve Flattening
Changing Industry Dynamics: Cost Curve Flattening 2018 Global Standalone Pigment Cost Curve • The cost curve has flattened $4,000 TIER 4 Small-scale • The Chinese have emerged European & $3,500 ~1.8x high-to-low ratio between Tier 4 Asian players and Tier 1 • The Europeans have lost ground $3,000 TI
Slide 38: Strategy Driven by Changing Industry Dynamics
Strategy Driven by Changing Industry Dynamics 5 STRATEGIC PILLARS FOUNDATIONAL DISTINCTIVENESS / SOURCES OF ADVANTAGE ENABLING 1 Competitive TiO2 Pigment Costs 2 Feedstock Integration 3 Leading Global Footprint 4 TiO2 Technology Leader • Low-cost, high-quality pigment Competitive Positioning Commerc
Slide 39: Strategy Will Result in TiO2 Pigment Cash Cost Reduction of $200-300/ton by 2023
Strategy Will Result in TiO2 Pigment Cash Cost Reduction of $200-300/ton by 2023 2018 Integrated Pigment Global Cost Curve Rolled Forward • Cash cost/ton reduction sources  ~2/3rds from pigment operations  ~1/3rd from mineral sands operations • Emergence of clear industry leaders: The solidificati
Slide 40: Operationalizing Our Outward Mindset
Operationalizing Our Outward Mindset • Capital Constraints • Weighted Cost of Capital • Capital Project Optimization Strategy • Costs (Fixed & Variables) Finance • Long-term Market Supply & Demand • Macros (FX, CPI, Labor, etc.) • Optimization of Reserve Resources • Key Commodity Price Enterprise •
Slide 41: A Single Unified Commercial Approach
A Single Unified Commercial Approach • High-value proposition for our customers • Accelerating bespoke margin stability initiatives • Partnering with strategic customers growing faster than the market • Fair value for every pound produced © 2019 Tronox Holdings plc. | All rights reserved. | tronox.c
Slide 42: Our Operations Philosophy
Our Operations Philosophy SQLCT Operational Excellence Business Transformation Integrated Business Planning Operational Organizational Risk Effectiveness Management Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Project Effectiveness Asset Reliability Shareholder Returns A
Slide 43: 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 44: Aligned With Our Shareholders and With Our Commitments
Aligned With Our Shareholders and With Our Commitments Target Performance Target Integration Target Total Based RSU’s RSUs Performance Vesting RSUs Vesting 2020 2021 2022 2021 Jeff Quinn -- 90,715 206,243 165,000 461,958 J-F Turgeon 34,169 25,014 53,846 160,643 273,672 John Romano 28,396 20,811 46,4
Slide 45: The New Tronox
The New Tronox Transformative A culturally driven acquisition has high-performance Lowering our costs, Our focus is on created extraordinary organization with delivering the execution opportunities to a compelling synergies create value market-driven strategy Greater stability in Robust cash financi
Slide 47: Focused Pure-Play in the TiO2 Value Chain
Focused Pure-Play in the TiO2 Value Chain Our mission Our goal • To deliver shareholder returns To create the equity above those of other TiO2 equities; and offering of choice in the • Top-quartile returns against a TiO2 space broader group of chemicals and materials peer companies • On a sustained,
Slide 50: Tronox New Combined Pigment Demand
Tronox New Combined Pigment Demand Heatmap of all global pigment demand (pigment slurry, dry, bulk) © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 51: Tronox New Combined Pigment Demand
Tronox New Combined Pigment Demand Heatmap of all global pigment demand (pigment slurry, dry, bulk) 21% 30% 11% 8% 30% © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 52: Unmatched Global Operations Footprint
Unmatched Global Operations Footprint Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough UK Capacity: 165 kMT Oklahoma City USA Administration & Technical Center Thann Snapper France Australia Hamil
Slide 53: Distribution Cost Synergy Opportunity
Distribution Cost Synergy Opportunity Combined global legacy network includes 9 plants and 35 active warehouses spread across 5 continents © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 55: World-Class Product Portfolio
World-Class Product Portfolio Comprehensive TiONA 242, a Best-in-class global portfolio for engineering plastics top-tier plastics paper laminate including the 8870 product in product in TiONA PC grade Latin America RCL-722 Best-in-class Great durable The two best multi- Best-in-class purpose coatin
Slide 56: World-Class Product Portfolio
World-Class Product Portfolio Comprehensive TiONA 242, a Best-in-class global portfolio for engineering plastics top-tier plastics paper laminate including the 8870 product in product in TiONA PC grade Latin America RCL-722 Best-in-class polyolefins product in Great durable The two best multi- Best-
Slide 57: Industry-Leading Product Portfolio
Industry-Leading Product Portfolio Top 15 Products 23% Product 19% Tronox Cristal 11% 9% 6% 5% 5% 5% 3% 3% 3% 2% 2% 2% 2% TiONA CR-826S TiONA TiONA RCL TiONA CR-826 CR-828 CR-834 TR33 RKB2 TR36 CR-880 8141SL RCL69 595 -02 121 128 722 696 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.co
Slide 58: Industry-Leading Product Portfolio
Industry-Leading Product Portfolio Top 15 Products Product Tronox Cristal TiONA TiONA CR-826 TiONA 121 CR-828 CR-826S TiONA TiONA 128 RCL CR-834 TR33 RKB2 TR36 CR-880 TiONA 8141SL RCL69 595 -02 121 128 722 696 © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 59: Customer Overlap and Harmonization
Customer Overlap and Harmonization Number of pigment parent customers per region AMER EMEA APAC  Overlap on parent level is smaller than expected  Customer (ship-to) level overlap is 370 smaller 495 310  Price exposure risk is smaller than 375 one-fifth of expected based on 118 39 similar pricing
Slide 61: Margin Stability Program – Previous Cycle
Margin Stability Program – Previous Cycle Monthly Volume, MT Price Index “There is no doubt that this is a permanent mean shift” – 2012 “If this continues for one more year, companies will go out of business” “We will never see pricing sub $2200/mt again” – 2016 – 2013 © 2019 Tronox Holdings plc. |
Slide 62: Margin Stability Program – What’s Changed from Previous Cycle
Margin Stability Program – What’s Changed from Previous Cycle Monthly Volume, MT Price Index Price recovers as Much shorter downturn: Price rallies after Extended downturn due to: supply and demand  Limited inventory build severe pigment  Excess inventory built by customers due to by customers re-
Slide 64: Alignment with the Right Customers
Alignment with the Right Customers Commercial Link • Attach at all levels to the customers with the strongest brands and growth trajectory • As they grow, we expand our share without giving up margin • Delivering value for every kilo we make through win-win CollaboraTiO2n Quality Technical Manufactu
Slide 65: Customer Portfolio – Growth Trajectory Is Key
Customer Portfolio – Growth Trajectory Is Key Revenue Growth of Strategic Global Customer ANNUAL REVENUE INDEXED 3.5 2.5 Attach ourselves to the customers who are growing faster than the market 1.5 0.5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tronox Volume Growth at Strategic Account ANNUAL
Slide 66: 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 • Tronox is the 2nd largest zircon producer with approximately 270,000 tons of capacity • Market Dynamics  End of short-term destocking
Slide 67: Zircon Margin Stability Program
Zircon Margin Stability Program • Customer and industry focus Zircon Pricing – Indexed to 2000  Historical pricing was adjusted on spot, quarterly or monthly basis ⎼ Pricing now adjusted on a semi-annual basis  Provides customers with price predictability  Gives customers the ability to plan and
Slide 68: Zircon Margin Stability Program
Zircon Margin Stability Program • Customer and industry focus Zircon Pricing – Indexed to 2000  Historical pricing was adjusted on spot, quarterly or monthly basis ⎼ Pricing now adjusted on a semi-annual basis  Provides customers with price predictability  Gives customers the ability to plan and
Slide 69: Tronox Specialty Chemicals
Tronox Specialty Chemicals • Leading manufacturer of Ultrafine TiO2 nanomaterials - Stronghold in Environmental Catalysts - Unique product offering to multiple high-value applications - recognized and established brand name • Largest supplier of merchant Titanium Chemicals - Global reach - Different
Slide 70: Tronox Specialty Chemicals New Segments
Tronox Specialty Chemicals New Segments Ultrafine & Titanium materials are available or under development for: • Photocatalytic in-situ depollution and self cleaning • Electronics for next-generation capacitors • Energy Storage for safer and higher performance • Water Treatment for removal of organi
Slide 72: New Product Development
New Product Development Powerful Innovation for Our Customers Efficiency, Durability, Customer Partnerships Throughput, Performance Tint Strength Concept Enhancement Technology Development Next-Generation Plastics Scale-up Grade Plant Trials Launch Manufacture/Deploy Specialty Plastics Grade Instant
Slide 73: Combination Forms The Products and Brand of the Future
CombinaTiO2n Forms The Products and Brand of the Future New Tronox TiONA line has the best combination of products across all regions and segments • Best general purpose products: 595, CR-826 • Best specialty coatings products: 696, CR-880, 8140 • Best specialty plastics products: 288, 8300, RCL-69,
Slide 75: Jean-François Turgeon, EVP and Chief Operating Officer
Jean-François Turgeon Executive Vice President and Chief Operating Officer © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 76: Unmatched Global Operations Footprint
Unmatched Global Operations Footprint Botlek the Netherlands Yanbu KSA Fuzhou Capacity: 90 kMT Capacity: 200 kMT China NYC and Stamford Capacity: 46 kMT USA Corporate Offices Stallingborough UK Capacity: 165 kMT Oklahoma City USA Administration & Technical Center Thann Snapper France Australia Hamil
Slide 77: Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns
Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 78: Safety, Environment and Sustainability
Safety, Environment and Sustainability Hillendale Mine Safety for our employees and Active Operations the communities we operate in is our 1st Priority. Active Rehabilitation © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 79: Strategy will Deliver $200-300/ton TiO2 Pigment Cash Cost Reduction by 2023
Strategy will Deliver $200-300/ton TiO2 Pigment Cash Cost Reduction by 2023 2018 Integrated Pigment Global Cost Curve Rolled Forward to 2023 • Sources of cash cost / ton reduction  ~2/3rds from TiO2 pigment operations  ~1/3rd from mineral sands operations Tronox 2023 © 2019 Tronox Holdings plc. |
Slide 80: Tronox Planning Horizon
Tronox Planning Horizon G L O B A L I N T E G R AT E D B U S I N E S S P L A N N I N G Planning Horizons Mine Planning Furnace & Co-Product (FCP) Planning Pigment Planning 6 Mining & 6 Separation 5 Ilmenite 6 Chloride 3 Sulfate Pigment Concentration (MSP) Upgrading Pigment Namakwa Namakwa KZN F1 Ham
Slide 81: Enterprise Optimization (EO) – Integrated Business Planning (IBP)
Enterprise Optimization (EO) – Integrated Business Planning (IBP) • Capital Constraints • Weighted Cost of Capital • Capital Project Optimization Finance Strategy • Long-term Market Supply & Demand • Costs (Fixed & Variables) • Macros (FX, CPI, Labor, etc.) • Optimization of Reserve Resources • Key
Slide 82: Turning Complexity into Competitive Advantage
Turning Complexity into Competitive Advantage Mining & Mineral Sands Pigment Distribution Combined Warehouse Map Dongara Cooljarloo-West Cooljarloo Chandala Broken Hill North Shore Ginkgo/Snapper Wonnerup Atlas/Campaspe Paraíba Enterprise Optimization Namakwa East OFS Namakwa East Namakwa West KZ N
Slide 83: Excellence: Legacy Tronox Operational Excellence Program
LEGACY TRONOX Operational Excellence Program Excellence EBITDA Benefits ($M) We align our efforts Integrated 61 Business 59 Planning 46 39 Operational Risk Organizational Management Effectiveness We collaborate 2016 (A) 2017 (A) 2018 (A) 2019 (F) We operate safely 2019 Funnel # of Projects Project E
Slide 84: Operational Excellence: Kwinana Implementation
OperaTiO2nal Excellence: Kwinana Implementation Kwinana Annual Finished Pigment Production • OE Standards: 160000 153 ktpa • 2016-2017 150000 Demonstrated Capacity  SQLCT Business Planning  Short Interval Control Operational 140000  OEE Process & Reliability Excellence started Q2 2016 • 2018 to C
Slide 85: Operational Excellence RAMs Project
OperaTiO2nal Excellence KEY POINTS RAMs Project BULLSEYE • Acceptable risk • Optimal cost Reliability, Availability, Maintainability, and Safety LIGHT BLUE RING • Peer reviews • Management of change • Training • Work instructions OUTER RING • Detailed plans • All stakeholders engaged • Validate stra
Slide 86: Optimizing Capital Investments
Optimizing Capital Investments Strategic and Overarching Objective: Doing the right project, doing the projects right. Mandatory Strategic, discretionary Discretionary Capex earns significant returns on investment PLAN REVIEW APPROVE EXECUTE Build winning portfolio Forecasting used to Streamlined, c
Slide 88: Synergy Savings Achieved in Calendar Year
Synergy Savings Achieved in Calendar Year US $M 220 $200 original estimate 175 of run rate synergies by end of Year 3 $160 original estimate of run rate synergies by end 120 of Year 2 $100 original estimate of run rate synergies by end of Year 1 45 2019 2020 2021 2022 Presented synergies represent s
Slide 89: Synergy Savings Achieved in Calendar Year
Synergy Savings Achieved in Calendar Year US $M 220 27 Supply Chain 175 42 SG&A 26 24 Feedstock 120 41 23 24 40 127 Operations 45 11 6 84 20 46 6 13 2019 2020 2021 2022 Presented synergies represent savings achieved in the calendar year Non-EBITDA synergy is interest rate reduction resulting from lo
Slide 90: Synergies from Operations
Synergies from Operations USD Millions 127 84 46 13 2019 2020 2021 2022 • Best Practice Projects  Technology exchange  Maintenance materials and procedures • Value In Use  Optimize (processing) cost of feedstock at pigment plants • Yanbu Operations  Improve Yanbu performance - output, cost and q
Slide 91: Synergies from Operations – Yanbu Best Practices
Synergies from Operations – Yanbu Best Practices • Increase to 4.5 TPLH • Increase OST to >85% • Increase Quality to Tronox Standards • Increase production to 210 KTPA1 Yanbu contributes >50% to Operations Synergy Target To achieve this, developed pool of ideas with savings in excess of $90 million
Slide 92: Synergies from Feedstock
Synergies from Feedstock USD Millions 24 24 11 6 2019 2020 2021 2022 • Maximize SR kiln output  Use legacy Cristal ilmenites to produce incremental SR • Maximize Slag output  Use legacy Cristal high-grade ilmenites to produce incremental slag • Value In Use  Optimize (processing) cost of feedstoc
Slide 93: Synergies from Feedstock
Synergies from Feedstock • Freight cost reduction from consolidated, more efficient shipments • Geographic and diverse feedstock supply minimizes production risk in tight supply market • Reduced rates from combined spend Tronox TiO2 Other Feedstock Tronox Mineral Sands © 2019 Tronox Holdings plc. |
Slide 94: Synergies from Supply Chain
Synergies from Supply Chain USD Millions Lowest Low Medium High 27 Opportunity Opportunity Opportunity Opportunity 26 High Wave 4 Wave 3 Wave 2 Wave 1 23 6 Savings / Impact ($) 2019 2020 2021 2022 • Network Optimization  Reducing distribution costs  Optimizing grade portfolio  Leveraging volume d
Slide 95: Synergies from SG&A
Synergies from SG&A USD Millions 40 41 42 • >50% of synergies already ensured from Day 1 actions 20 • Actions in progress have been taken and are soon Active Projects to be realized • Full opportunity list Day 1 Actions 2019 2020 2021 2022 continues to grow • Organization Efficiency  Tronox Way Act
Slide 96: Synergy Savings Achieved in Calendar Year
Synergy Savings Achieved in Calendar Year US $M 220 $200 original estimate 175 of run rate synergies by end of Year 3 $160 original estimate of run rate synergies by end 120 of Year 2 $100 original estimate of run rate synergies by end of Year 1 45 2019 2020 2021 2022 Presented synergies represent s
Slide 98: Mining Optionality
Mining OpTiO2nality • World class throughout the chain  Mining  Mineral separation  Upgrading • Mineral reserve portfolio optimization © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 99: Excellence
Excellence Integrated Business Planning Operational Organizational Risk Effectiveness Management Our People Project Asset Effectiveness Reliability Next mine Gingko Concentrator Asset Utilization Dredges & Concentrators 2019 2020 • Bring knowledge and expertise from Cooljarloo mine • Benchmark and c
Slide 100: South Africa Production Trend
South Africa – Total Saleable Products 1000 000 900 000 887,853 855,451 800 000 781,858 725,978 691,273 700 000 South Africa 600 000 500 000 524,247 Production 400 000 Trend 300 000 200 000 100 000 - 2014 2015 2016 2017 2018 FC3 2019 CP Slag Zircon products Pig iron Rutile product Sulphate Slag Othe
Slide 101: South African Mineral Recovery Project – Unlocking the Hidden Factory
South African Mineral Recovery Project – Unlocking the Hidden Factory Contained Zircon Mineral% 100 Mineral Loss Recovery 90 6.2 8.9 80 9.3 0.88 70 4.6 Zircon 5.4 60 1.1 0.61 3.54 0.94 2.29 50 100 6.2 19 1.9 85 40 77 66 65 30 56 20 10 0.0 0 Contained Ilmenite Mineral % 100 Mineral Loss Recovery 90 6
Slide 102: Jazan Slagger
Jazan Slagger • Jazan slagger comprised of two high-grade chloride feedstock furnaces with 500KTPY combined capacity • Jazan represents one of multiple paths to further optimize vertical integration level of new Tronox • High return potential for limited investment • Tronox obligation capped at $125
Slide 104: Key Strategies
Key Strategies Digitization Vertical Integration Automation Process Improvement Operational Excellence Embracing the Maximizing the value of Simplifying production Standardized work Embracing the Tronox opportunities our network by processes through the practices leading to way leading to Safe, prov
Slide 105: Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns
Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com
Slide 108: Legacy Tronox Business Remains Strong, Synergies Trending Up
Legacy Tronox Business Remains Strong, Synergies Trending Up 2019 Legacy Cristal Business in Transition All Results on As Reported or To Be Reported Basis Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 92-102 127-15
Slide 109: Legacy Tronox Business Remains Strong, Synergies Trending Up
Legacy Tronox Business Remains Strong, Synergies Trending Up 2019 Legacy Cristal Business in Transition All Results on As Reported or To Be Reported Basis Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 92-102 127-15
Slide 110: Legacy Tronox Business Remains Strong, Synergies Trending Up
Legacy Tronox Business Remains Strong, Synergies Trending Up 2019 Legacy Cristal Business in Transition All Results on As Reported or To Be Reported Basis Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 92-102 127-15
Slide 111: Legacy Tronox Business Remains Strong, Synergies Trending Up
Legacy Tronox Business Remains Strong, Synergies Trending Up 2019 Legacy Cristal Business in Transition All Results on As Reported or To Be Reported Basis Adjusted EBITDA (USD millions) 2018 Q1 Q2 2nd Half 2019 Legacy Tronox 513 80 125-135 270-320 475-535 Cristal Contribution – – 35-50 90-105 125-15
Slide 112: 2020 Delivers Robust Adj EBITDA and Free Cash Flow
2020 Delivers Robust Adj EBITDA and Free Cash Flow All Results on As Reported or To Be Reported Basis Revenue Adj EBITDA Free Cash Flow EPS ($ MM’s) ($ MM’s) ($ MM’s) 2H 2019 1,670-1,770 390-465 135-160 0.30-0.55 2019 2,830-2,980 635-740 130-160 (0.17)-0.43 2020 3,650-3,745 900-1,100 325-450 1.40-2.
Slide 113: Significant Earnings and Free Cash Flow Growth by 2023
Significant Earnings and Free Cash Flow Growth by 2023 All Results on As Reported or To Be Reported Basis Revenue Adj EBITDA Free Cash Flow EPS ($ MM’s) ($ MM’s) ($ MM’s) 2H 2019 1,670-1,770 390-465 135-160 0.30-0.55 2019 2,830-2,980 635-740 130-160 (0.17)-0.43 2020 3,650-3,745 900-1,100 325-450 1.4
Slide 114: Deleveraging & Investing in Core Business Will Be Focus of Capital Allocation
Deleveraging & Investing in Core Business Will Be Focus of Capital Allocation Vertically Integrated Business Model Generates Significant Free Cash Flow EBITDA Capex Cash Taxes Interest WC/Pensions Total 2019* 635-740 240-270 30-55 190-200 45-55 130-160 2020 900-1,100 320-360 40-60 190-200 25-30 325-
Slide 115: Deleveraging to $2.5B Gross Debt No Later than 2023 Significantly Reduces Leverage Ratios
Deleveraging to $2.5B Gross Debt No Later than 2023 Significantly Reduces Leverage Ratios 2018 2019 2020 2023 Gross Leverage 3.5x 4.6x-4.0x 3.3x-2.7x 2.0x-1.7x Net Leverage 2.6x 4.1x-3.6x 2.9x-2.4x 1.0x-.9x Net Leverage 2x-3x Target …with no significant maturities until 2024 ($M) 1,977 615 450 60 60
Slide 116: Tronox has Significant Tax Attributes
Tronox has Significant Tax Attributes Attribute Est Tax Shield Tax Planning • Value Chain Analysis / Transfer Pricing Initiative US $4.1B 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 117: Global Manufacturing Platform Creates FX Exposures
Global Manufacturing Platform Creates FX Exposures Approximate Annual FX Philosophy FX Exposures By Country Adj EBITDA Impact Per Indicated Change in • Hedge known Balance Sheet exposures Functional Currency with forwards and caps/collars 1 ZAR $30M • Hedge significant capital expenditure AUD 0.01 $
Slide 118: Existing Asset Base and Strategy Execution Creates Significant Growth
Existing Asset Base and Strategy Execution Creates Significant Growth Earnings and Free Cash Flow Growth by 2023 Revenue ($Bs)* Adj EBITDA ($MMs)* Range 2.8-3.0 3.6-3.8 4.0-4.4 5.0-6.0 Range 635-740 900-1,100 1,200-1,400 1,500-1,800 2019 2020 2023 Future 2019 2020 2023 Future Free Cash Flow ($MMs)*

Tronox Holdings — Investor Day (May 2019) on 6ix

Tronox — Investor Day (May 2019)

Slide 1: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 2: Brennen Arndt, SVP Investor Relations

Slide 3: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 4: Emergency Evacuation Procedures

Slide 5: Safe Harbor Statement and Non-U.S. GAAP Financial Terms

Slide 6: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 7: Jeffry Quinn, Chairman and CEO

Slide 8: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 9: The Transformation of Tronox

Slide 10: A Brilliant Advantage

Slide 11: A Brilliant Advantage: Global Footprint

Slide 12: A Brilliant Advantage

Slide 13: An Executive Team with a Global Perspective

Slide 14: Russ Austin – Managing Director, Australia

Slide 15: Mpho Mothoa – Managing Director, South Africa

Slide 16: Emad AlJunaidi – Vice President, Global Supply Chain

Slide 17: Jimmy Killebrew – Managing Director, Europe

Slide 18: Paul Gilman – General Manager, Hamilton

Slide 19: A Global Footprint to Serve a Global Industry

Slide 20: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 21: Determination to Deliver Results

Slide 22: Determination to Deliver Our Commitments

Slide 23: Our Starting Point

Slide 24: Our Starting Point

Slide 25: Our Starting Point

Slide 26: Our Starting Point

Slide 27: Synergies Realized in Calendar Year

Slide 28: 2019 Financial Commitments Provide a Foundation for Creation of Shareholder Value

Slide 29: …With Significant Earnings and Free Cash Flow Growth by 2020

Slide 30: … and Even More Robust Financial Performance over the Long Term

Slide 31: Capital Allocation

Slide 32: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 33: How We Will Do It

Slide 34: Our Values and Outward Mindset

Slide 35: Strategy Driven by Changing Industry Dynamics

Slide 36: Changing Industry Dynamics: Cost Curve Flattening

Slide 37: Changing Industry Dynamics: Cost Curve Flattening

Slide 38: Strategy Driven by Changing Industry Dynamics

Slide 39: Strategy Will Result in TiO2 Pigment Cash Cost Reduction of $200-300/ton by 2023

Slide 40: Operationalizing Our Outward Mindset

Slide 41: A Single Unified Commercial Approach

Slide 42: Our Operations Philosophy

Slide 43: Aligned With Our Shareholders and With Our Commitments

Slide 44: Aligned With Our Shareholders and With Our Commitments

Slide 45: The New Tronox

Slide 46: Differentiation

Slide 47: Focused Pure-Play in the TiO2 Value Chain

Slide 48: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 49: John Romano, Chief Commercial and Strategy Officer

Slide 50: Tronox New Combined Pigment Demand

Slide 51: Tronox New Combined Pigment Demand

Slide 52: Unmatched Global Operations Footprint

Slide 53: Distribution Cost Synergy Opportunity

Slide 54: The NEW Tronox TiO2 Pigment Commercial Footprint

Slide 55: World-Class Product Portfolio

Slide 56: World-Class Product Portfolio

Slide 57: Industry-Leading Product Portfolio

Slide 58: Industry-Leading Product Portfolio

Slide 59: Customer Overlap and Harmonization

Slide 60: Margin Stabilization Initiatives

Slide 61: Margin Stability Program – Previous Cycle

Slide 62: Margin Stability Program – What’s Changed from Previous Cycle

Slide 63: Customer Collaboration

Slide 64: Alignment with the Right Customers

Slide 65: Customer Portfolio – Growth Trajectory Is Key

Slide 66: Zircon Delivering Significant Profitability and Margin Enhancement

Slide 67: Zircon Margin Stability Program

Slide 68: Zircon Margin Stability Program

Slide 69: Tronox Specialty Chemicals

Slide 70: Tronox Specialty Chemicals New Segments

Slide 71: What’s Next?

Slide 72: New Product Development

Slide 73: Combination Forms The Products and Brand of the Future

Slide 74: © 2019 Tronox Holdings plc. | All rights reserved. | tronox.com

Slide 75: Jean-François Turgeon, EVP and Chief Operating Officer

Slide 76: Unmatched Global Operations Footprint

Slide 77: Delivering Safe, Quality, Low-Cost Tons for our Customers and Exceptional Shareholder Returns

Slide 78: Safety, Environment and Sustainability

Slide 79: Strategy will Deliver $200-300/ton TiO2 Pigment Cash Cost Reduction by 2023