Tronox Holdings Plc · NYSE:TROX

Tronox — Q4 2019 Earnings Presentation

22 slides from Tronox's earnings presentation, Feb 26, 2020

  1. Slide 1: Fourth Quarter and Full Year 2019 Conference Call

    Fourth Quarter and Full Year 2019 Conference Call February 26, 2020 © 2020 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 U.S. Private Securities Litigation Reform Act of 1995. These forward-looking

  3. Slide 3: 2019 – A Year of TransformaTiO2n

    2019 – A Year of TransformaTiO2n • Formed the world’s largest vertically integrated TiO2 producer through the acquisition of Cristal’s TiO2 business • Unmatched global footprint with 9 pigment plants and 8 mineral sands facilities on 6 continents • Enhanced top-line stability through successful win-

  4. Slide 4: Fourth Quarter and Full Year 2019 Highlights

    Fourth Quarter and Full Year 2019 Highlights Pro Forma Summary Financials Q4 ‘19 Q4 ‘18 % ∆ YoY 2019 2018 % ∆ YoY • Reported full year 2019 results in-line with or exceeded guidance issued in Q3 2019 Revenue $ 693 $ 728 (5%) $ 3,008 $ 3,339 (10%) • Adjusted EBITDA within guidance; Adjusted Net Incom

  5. Slide 5: Tronox Delivered $89 million of Synergies in 2019

    Tronox Delivered $89 million of Synergies in 2019 Raising Synergy Targets 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-EBITDA Cash Synergies Achieved R

  6. Slide 6: Pro Forma 4Q19 vs 4Q18 Commercial Performance

    Pro Forma 4Q19 vs 4Q18 Commercial Performance USD millions 4Q19 4Q18 Change Volume and Price Changes Volume Price Revenue $ 693 $ 728 (5%) TiO2 3% (5%) TiO2 544 550 (1%) Local Currency N/A (4%) Zircon 71 107 (34%) Zircon (29%) (6%) Feedstock & Other Products 78 71 10% • Revenue down 5% driven primar

  7. Slide 7: 4Q19 vs 3Q19 Commercial Performance

    4Q19 vs 3Q19 Commercial Performance USD millions 4Q19 3Q19 Change Volume and Price Changes Volume Price Revenue $ 693 $ 768 (10%) TiO2 (9%) (1%) TiO2 544 603 (10%) Local Currency N/A (1%) Zircon 71 68 4% Zircon 7% (3%) Feedstock & Other Products 78 97 (20%) • Revenue down 10% driven by seasonality i

  8. Slide 8: 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 10% 160% 150% 5% 140% 0% 130% -5% 120% -10% 110% -15% 100% 40% 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 250% 5 6 7 8 9 10 11 2018 2019 30% 200% 20% Change in 3 mo. Moving Average 10% 15

  9. Slide 9: Adjusted EBITDA

    Adjusted EBITDA USD millions 4Q19 4Q181 Change 3Q19 Change Adjusted EBITDA $ 156 $ 216 (28%) $ 184 (15%) Adjusted EBITDA margin 23% 30% (7 pts) 24% (1 pt) • Lower TiO2 selling prices primarily due to legacy Cristal commercial approach in 2018 • Lower zircon sales volumes and prices due to softer mar

  10. Slide 10: Financial Position 4Q19 & 2020 Guidance

    Financial Position 4Q19 & 2020 Guidance • December 31, 2019 debt of $3.0 billion • Returned ~$315 million to shareholders in 2019  $2.7 billion net of cash and cash equivalents  Repurchased ~21.5 million shares  $100 million discretionary debt repayment made  Regular dividend payment in December

  11. Slide 11: 2020 Outlook & Key Focus Areas

    2020 Outlook & Key Focus Areas • Preparing for a recovery in the markets in which we participate • Managing levers within our control ‒ Deliver on the increased synergy targets ‒ Continued disciplined approach to capex, investing in high-return projects ‒ Continued deleveraging of the balance sheet

  12. Slide 12: Q&A Session

    Q&A Session © 2020 Tronox Holdings plc. | All rights reserved. | tronox.com

  13. Slide 13: Appendix

    Appendix © 2020 Tronox Holdings plc. | All rights reserved. | tronox.com 13

  14. Slide 14: Consolidated Statements of Operation (U.S. GAAP)

    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

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: 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 December 31, Year Ended December 31, 2019 2018 2019 2018 Net (loss) income (

  19. Slide 19: 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 provided by operating activities, to free cash flow for the three months ended December 31, 2019: Consolidated Cash provided by operating activ

  20. Slide 20: Pro Forma Consolidated Statements of Operations (U.S. GAAP)

    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

  21. Slide 21: Reconciliation of Pro Forma Net (Loss) Income from Continuing Operations

    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

  22. Slide 22: Pro Forma Reconciliation of Net Income to EBITDA and Adjusted 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 — Q4 2019 Earnings Presentation on 6ix