Tronox Holdings Plc · NYSE:TROX
Tronox — Q1 2024 Earnings Presentation
22 slides from Tronox's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Conference Call
First Quarter 2024 Conference Call Tronox Holdings plc May 2, 2024 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 1
Slide 2: Presenters
Presenters John Romano John Srivisal Chief Executive Officer Senior Vice President, Chief Financial Officer Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 2
Slide 3: 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 4: Tronox – A Diversified, Vertically Integrated Titanium Industry Leader
Tronox – A Diversified, Vertically Integrated Titanium Industry Leader TROX $2.9B $524M 85% ~6,500 ~1,200 NYSE 2023 Revenue 2023 Adj. EBITDA Feedstock Integration1 Global Employees Customers • Vertically integrated mining and inorganic chemical Sales by Sales by TiO2 Sales Volume company Region2 Pro
Slide 5: Key Messages from the Quarter
Key Messages from the Quarter Volumes outpaced expectations against backdrop of improving costs • Produced revenue of $774M, as customer demand trends above normal seasonal levels and restocking drove volumes for both TiO2 and zircon above expectations – Strength of our global footprint enabled us t
Slide 6: First Quarter 2024 Financial Highlights
First Quarter 2024 Financial Highlights Strong performance exceeded expectations Q1 ’24 Q1 ’23 YoY % ∆ Q4 ’23 QoQ % ∆ • Revenue increase driven by higher sales volumes from Revenue $ 774 $ 708 9% $ 686 13% TiO2 and zircon • Income from operations of $41M; Net loss attributable Income from Operations
Slide 7: Commercial Performance
Commercial Performance Volumes outpaced expectations for both TiO2 and zircon Price/Mix Q1 ’24 Q1 ’23 YoY % ∆ Q4 ’23 QoQ % ∆ • Pricing / mix for TiO2 & Zircon in line with expectations QoQ Revenue $ 774 $ 708 9% $ 686 13% and consistent with Tronox’s margin stability program TiO2 605 560 8% 519 17%
Slide 8: Operational Performance
Operational Performance Higher operating rates in Q1 2024 drove lower production costs Production Costs Q1 ’24 Q1 ’23 YoY % ∆ Q4 ’23 QoQ % ∆ • YoY: Improvement of $20M mainly driven by lower input costs Adjusted EBITDA $ 131 $ 146 (10)% $ 94 39% and improved fixed cost absorption Adjusted EBITDA mar
Slide 9: Liquidity, Capital Expenditures & Free Cash Flow
Liquidity, Capital Expenditures & Free Cash Flow Balance sheet remains strong • Total debt at the end of Q1 2024 was $2.8B; 5.2x net • Total available liquidity of $629M as of March 31, 2024 leverage on TTM basis – Includes $152M in cash and cash equivalents – Q1 2024 weighted average interest rate
Slide 10: 2024 From Tronox's View
2024 From Tronox’s View Market Operations Growth • TiO2 volumes experiencing • Incurred approximately $25- • R&D efforts remain focused on positive trends – strong Q1 $35M in fixed cost absorption product and process recovery above typical headwinds in each quarter of innovations to enhance seasonal
Slide 11: Key Capital Projects to Sustain Vertical Integration
Key Capital Projects to Sustain Vertical Integration Fairbreeze Expansion Project Namakwa East OFS Project Life of mine finished Life of mine finished products: ~4,700kt products: ~6,480kt ilmenite, ~610kt zircon, ilmenite, ~935kt zircon, and ~325kt rutile and ~490kt rutile • South African mining pr
Slide 12: Outlook
Outlook Q4 2023A Q1 2024A Q2 2024E Full Year Uses of Cash FY 2024E Adjusted EBITDA $94M $131M $160-180M Net Cash Interest Expense ~$140M Net Cash Taxes <$10M Adj. EBITDA Margin % 13.7% 16.9% In the range of 20% Capital Expenditures ~$395M Q2 2024 Commentary Full Year 2024 Commentary • Assume TiO2 vo
Slide 13: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities Our capital allocation strategy remains unchanged 1 Investing in projects that are critical to furthering our strategy and driving value from our vertically integrated portfolio 2 Bolstering our liquidity and as the market recovers, resume debt paydown 3 Maintainin
Slide 14: Q&A Session
Q&A Session Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2024 14
Slide 15: Appendix
Appendix © 2024 Tronox Holdings plc | All rights reserved. | tronox.com 15
Slide 16: Consolidated Statements of Operations (U.S. GAAP)
Consolidated Statements of Operations (U.S. GAAP) TRONOX HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars, except share and per share data) Three Months Ended March 31, 2024 2023 Net sales $ 774 $ 708 Cost of goods sold 654 575 Gross prof
Slide 17: 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 ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP) TO ADJUSTED NET INCOME
Slide 18: Consolidated Balance Sheets
TRONOX HOLDINGS PLC Consolidated Balance Sheets CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Millions of U.S. dollars, except share and per share data) March 31, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 152 $ 273 Restricted cash 2 — Accounts receivable (net of a
Slide 19: Consolidated Statements of Cash Flows
TRONOX HOLDINGS PLC Consolidated Statements of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Millions of U.S. dollars) Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities: Net (loss) income $ (9) $ 25 Adjustments to reconcile net (loss) income to net cash prov
Slide 20: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA, ADJUSTED EBITDA AS A % OF NET SALES AND NET DEBT TO TRAILING-TWELVE MONTHS ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. d
Slide 21: 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, 2024: Three Months Ended March 31, 2024 Cash used in operat
Slide 22: Reconciliation of Trailing Twelve Month Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Trailing Twelve Month Net (Loss) Income to EBITDA and Adjusted EBITDA (NON-U.S. GAAP) TRONOX HOLDINGS PLC RECONCILIATION OF TRAILING TWELVE MONTH NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP) (UNAUDITED) (Millions of U.S. dollars) Three Months Ended Trailing Twelv